Why draft new company contracts?

Contracts

At the point in time, when you enter into a construction contract, which is normally goverened by the documents exchanged leading up to the commencement on-site, frame your agreement for price, scope, programme, and payment terms.

The payment terms are a key issue to the contract, and can only rarely be changed after acceptance of the order.

Therefore, our clients are urged to carefully consider these four elements that make a basic contract, with particular regard to the payment terms, and the dispute resolution process.

Adjudication Services can provide a contract or subcontract-checking service and explain the details or structure of the document they're signing in an effort to prevent disputes arising as a result of mis-understanding the requirements and obligations of the contract its entered into.

It will cost from £350 to assess and review the contract documents before accepting/signing the contract.

By commencement of work and the acquiescence to commencing by the client will form a contract if no other subcontract is in place at the time.

Therefore, the last offer on the table in this circumstance will be considered the terms that apply to the contract. (The battle of the forms/documents)

Adjudication Services can assist its clients with evaluating the terms of its contract (which are sometimes different to what you might think) and help them with service of documents and notices relevant to the contract and further prevent disuputes arising.

Overview: Types of Contracts

Domestic Construction

A domestic building contract is an agreement containing all the work that should be performed for the construction of a commercial or residential building existing or occurring inside a particular country; not foreign or international.

Commercial Construction

The great majority of commercial construction contracts are tailored to benefit contractors and builders by shifting most of the project’s costs to the landowner. Due to this, it is important that you understand the provisions of a commercial construction contract that are most commonly at issue, and how with the help of independent counsel you can negotiate more agreeable terms that will better allocate risks, diminish the likelihood of litigation, and equally spread financial burdens.

Supplier

Suppliers are a vital link in the business chain and as such the terms and conditions of the supplier agreement or contract will be very detailed. Businesses need to know that they can depend on the supplier to deliver their promises on time and as expected. One missed supply deadline could mean financial loss for the business and a loss of good faith and trust between supplier and client.

Internet (Smart Contracts)

Put simply, intelligent contracts (or ‘iContracts’) are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract, or that obviate the need for a contractual clause.

Prevention VS Enforcement

Updating your Terms and Conditions is a means of contract-breach prevention, helping you avoid falling short on your obligations to consumers, as well as appealing to larger contractors looking to sub-contract regulations-compliant companies.

However, in the unfortunate event of a contract or payment dispute, we offer adjudication services that provide an independent review and a legally-binding, decision-making process after which the outcome is legally binding - typically within 42 days! Super affordable rates, for sums small and large (£10k - £2.5m+).

Resolving contract breaches and disputes around terms can be a lengthy process. Updating your terms and conditions helps you define your optimal environment for dealing with your customers transparently, mitigating the risk of a contract dispute.


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Disputed Payments

Options to claim sums owed to you

Construction Adjudication

Under the Housing Grants Construction and Regeneration Act 1996 (the Construction Act) any parties in any construction contract in the UK to refer a dispute, at any time, to a 28-day procedure under which the matter will be decided by an independent adjudicator.

All construction contracts apart from some exceptions, in the UK must provide for adjudication as a first instance formal dispute resolution procedure.

Parties to a dispute can agree who their adjudicator will be, but in most cases, where they cannot agree, one of the parties can apply to an Adjudicator Nomination Body (ANB) for one to be appointed.

An adjudicator will be nominated by Adjudication Services who is an expert in the subject disputed matter. The adjudicator will use their expertise to resolve the matter within 28 days.

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Low Value Dispute Adjudication

Businesses in the construction sector are comprised of about 90% SMEs have limited availible judicial and legal resources and services due to these being expensive

The Low Value Dispute Module Adjudication Procedure [LVD MAP] has been developed with the Construction Industry Council (CIC) to provide a resolution to non-complex or cases/disputes not involving multiple issues with the claimed sum being less than £50,000. Parties are provided with a simple structure and programme to manage disputes.

The LVD MAP Rules provide for a streamlined and cost-effective process, under which, for example:

  1. The Adjudicator is expected to limit the length, or time for submission of any statement, response or argument
  2. The parties are required to limit their documents to no more than one A4 lever arch file (or electronic equivalent) per submission.

The LVD Service only applies to claims for a specified amount i.e. a liquidated sum, as between two parties and does not apply to claims where the amount sought has not been quantified e.g. damages or loss and expense to be assessed.

This is compliant with the Housing Grants, Construction and Regeneration Act 1996 (as amended). BEIS and the Construction Leadership Council is promoting this procedure industry-wide and with firm support.

An adjudicator will be nominated by Adjudication Services who is an expert in the subject disputed matter. The adjudicator will use their expertise to resolve the matter within 28 days.

Without prejudice to any other rights the Adjudicator may have to resign under the relevant adjudication rules applicable to the contract, the Adjudicator may also resign and claim his fees up to the date of resignation if:

  1. 1. the claim is not for a specific sum of money only; or
  2. 2. the claim is made as between more than 2 parties.

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